Latest tariffs may affect MO and KS more than most states, economist says

As the world's two largest economies trade blows in an escalating trade war, a KMBZ economist says the effect on the U.S. economy may be minimal, but area farmers in the Midwest may suffer.

The Trump administration plans to raise tariffs between 10 and 25 percent beginning Jan. 1 on a variety of goods imported from China, everything from purses to bicycle tires. Chinese leaders say they will retaliate on American imports, which would likely hit states like Kansas and Missouri harder than other parts of the country, said Chris Kuehl, economist and founder of Armade Corporate Intelligence.

"One of the most likely areas is agricultural, that's mostly what we sell to China," Kuehl said. "More tariffs on soybeans; more tariffs on corn, wheat, rice."

There is a bright side. The overall U.S. economy continues to grow at a healthy rate.

"(The tariffs) are still pretty minor, not so much for the companies that are caught up in them, but for the economy has a whole," Kuehl said.

Kuehl fully expects the two countries will eventually make a deal. He says most of what is happening right now is posturing while trade negotiations are underway.